The 3 Best Monthly Dividend Stocks to Own This Year for Steady Income

Joel Lim

February 27, 2024 3 min read

Focusing on stocks that offer quick returns can invite more risk in your buys and make for picky selections. The choice can be even more daunting, especially with the current economic fluctuations affecting stock prices and many businesses’ revenue streams.

However, these three real estate investment trusts (REITs) showcase a consistent track record of producing solid payouts and rewarding investors with monthly dividends. All three capitalize on sought-after real estate and practice smart investments to add to their portfolios, so you can be confident you will see a return.

We’ll detail these three businesses’ strategies and investment targets that have allowed them to build their solid foundation and ability to produce consistent dividends over time.

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Gladstone Commercial (GOOD)

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Gladstone Commercial (NASDAQ:GOOD) has a diverse list of properties, including industrial, office and retail. The REIT proved its short-term hold value with an over 200-month-long streak of increasing monthly dividends. Currently, the stock sits at a nearly 10% dividend yield.

After battling a less-than-favorable result at the end of 2023 due to some office properties that performed lower than average, Gladstone has dedicated its focus to acquiring new industrial properties and tenants with solid credentials.

With these new implementations and additions to its portfolio, Gladstone is showcasing its dedication to restabilization and returning to consistent, solid dividends. Gladstone boasts an 8.1% five-year average dividend yield and an above-average return on equity.

Now is a great time to take advantage of these new acquisitions’ profits and the reassuring history of payouts that Gladstone has shown throughout its history.

Main Street Capital (MAIN)

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Main Street Capital (NYSE:MAIN) is a business development company that has long specialized in lower middle market (LMM) companies (businesses with annual revenue of $10 million to $150 million). There are plenty of currently active companies in the LMM category, meaning Mainstreet only has room to grow and expand within its niche.

Main Street Capital currently offers a 6.1% dividend yield and, in last year’s fourth quarter, further increased its monthly dividend payout by 2.2%. Main Street Capital is an excellent choice for investors looking for great passive income from these above-average dividends.

One of the best parts about this stock is that at $46 per share, it is not unreasonably valued given the company’s solid history and potential. At a recent price-to-book ratio of 1.6, you can expect solid returns without an overly steep initial buy.

STAG Industrial (STAG)

Back View of the Head of the Project Holds Laptop and Discussing Product Details with Chief Engineer while They Walk Through Modern Factory., FR rents out these spaces in the U.S.

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STAG Industrial (NYSE:STAG) is another real estate investment trust that stays on top of current demand trends with smart, targeted investments in industrial and manufacturing properties.

Smart acquisitions have allowed STAG Industrial to fill its portfolio with fast-increasing rental income generators. STAG expanded its portfolio to well over 500 properties across the U.S. While demand for industrial real estate shows no signs of slowing down, neither does STAG Industrial.

While STAG’s dividend does not offer tremendous growth at only 0.7% annually for the past few years — it actually declined almost 8% last year — it has been an otherwise consistent payer for some 20 years. Future plans to expand its portfolio could provide a new source of consistent monthly dividends again for investors.

Keep these statistics in mind so you’re not surprised if you don’t receive large dividends. The yield, though is 3.7%. However, if you can remain patient and are okay with smaller yet consistent dividends, STAG stock is a fantastic buy.

On the date of publication, Joel Lim did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Joel Lim is a finance freelance writer who writes content for several companies like LTSE and Realtor, along with financial publications, including Mises Institute and Foundation for Economic Education.